Pound heads for third weekly decline as U.K. data underwhelm

The pound was on track for its third weekly decline versus both the dollar and the euro as U.K. data failed to paint a brighter economic outlook for a nation embroiled in negotiations to exit the European Union.

While sterling found some initial support on higher-than-forecast retail sales figures on Thursday, an underlying trend showed that consumers were flagging. Similarly, while labor-market data this week showed a drop in the unemployment rate, wage growth still lagged behind inflation. The pound fell to a one-month low against the dollar on Aug. 16, one day after a report showed annual consumer prices rose less in July than expected. The data may portend slower second-quarter growth when the latest gross domestic product figures are released on Aug. 24.

GBP/USD climbs 0.2% to 1.2888, paring its decline this week to 1%. The pair is attempting to form base against 1.2848 Fibonacci support.

Support at 1.2848-42, 61.8% Fibonacci, Aug. 16 low;

Resistance at 1.2909, Aug. 17 high

Source: Bloomberg Pro Terminal

Jr Trader Ivan Ivanov

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